Directors and Officers Liability

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What is Directors and Officers Liability Insurance?

​A type of liability insurance covering directors and officers for claims made against them while serving on a board of directors and/or as an officer. D&O liability insurance can be written to cover the directors and officers of for-profit businesses, privately held firms, not-for-profit organizations, and educational institutions. In effect, the policies function as "management errors and omissions liability insurance," covering claims resulting from managerial decisions that have adverse financial consequences. The policies contain "shrinking limits" provisions, meaning that defense costs—which are often a substantial part of a claim—reduce the policy's limits. This approach contrasts with commercial general liability (CGL) policies, in which defense is covered in addition to policy limits. 

​What is D&O insurance and why is it important?

As insurers, we feel it is essential to bring as much clarity as possible to the subject of D&O insurance in order to contribute to a well-founded public discussion. This risk briefing provides a look at the core issues surrounding D&O insurance and current market developments to give non-experts an overview of this increasingly important part of corporate risk management.

(858) 569-8100
(408) 224-4650
2888 Loker Avenue East
Suite 113B
Carlsbad, CA 92010
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